Visa Cracks Down on Memecoin Payment Loophole
Visa has issued instructions to payment processors to reclassify memecoin purchases as standard cryptocurrency transactions, following an investigation by The Block into Crossmint's handling of these transactions.
The card network reportedly told processors to stop using the digital media merchant category code (5815) for memecoin purchases, which allowed some users to buy memecoins with credit cards while receiving ordinary points or cash-back rewards.
Crossmint has defended its classification approach, stating that it remains in good standing with Visa, Mastercard, and its payment partners. However, The Block's investigation found that some tokens offered through Crossmint appeared to fall outside its own memecoin criteria.
As a result of the change, memecoin purchases will have to be processed as standard cryptocurrency transactions and face Visa's existing restrictions on such payments. Payment processors have been given a grace period until next week to make the necessary changes.